Kinetic Mines and Energy : M&E announced its 2019 interim result, with its profitability and dividend payout ratio maintaining at high level

Kinetic M&E announced its 2019 interim result, with its profitability and dividend payout ratio maintaining at high level【Hong Kong Economic Journal】

2019-08-23 | Hong Kong Economic Journal | Newspaper

China's leading and efficient integrated coal enterprise Kinetic M&E (01277 HK), has announced its 2019 interim result. For the six months ended 30 June 2019, the Group recorded a profit attributable to shareholders of RMB 380 million, a net profit margin of 29.7% and earnings per share of RMB 4.5 cents. Given the strong cash flow, Kinetic M&E maintained its high dividend payout policy and the board proposed the payment of an interim dividend of HKD 1.5 cents per share to the shareholders of the Company, which is at the same level as last year.

In the first half of 2019, under the influence of domestic and foreign economic environment, coal prices saw slight decline and the profitability of the industry in general receded. Kinetic M&E continued to speed up its cost reduction and efficiency enhancement process, focusing on controlling the expenses on coal production, washing, transportation, ports and administration, which effectively mitigated the impact of the decreased selling price on the gross profit margin. With its high quality coal product under the brand "Kinetic 2", sophisticated industry chain, refined cost control, efficient production technology and other advantages, the Group has succeeded in maintaining a higher gross profit margin comparing with its peers.

During the media luncheon that took place yesterday, the management of Kinetic M&E stated that, under the leadership of Mr. Zhang Li, the management is still confident of the annual result of the Group, and expects a steady development of production, sales and trade in the second half of the year. Following China's promotion of supply-side reform and de-capacity policies of the coal industry, it is expected that the leading enterprises of the industry will be benefited. In addition, Kinetic M&E is actively searching for merger and acquisition opportunities, sparing no effort in maximizing value for shareholders.

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